Statutory pretax profit dropped to £1.37B ($2.31B) from £2.04B, which included gains from the sale of government securities. Consensus was £1.7B.
Net interest income rose 10% to £2.81B.
Net income fell to £1.15B from £1.53B.
Impairment charges dropped 57% to £431M, costs -5% to £2.3B.
Tier 1 ratio rose to 10.7% from 10.3% at the end of 2013; leverage 4.5%.
Lloyds expects to float 25% of its TSB division by the end of June, and to apply for permission to restart dividend payments in H2.
Shares are +3.5% in London. (PR)